In a significant move that’s poised to affect millions of customers, ICICI Bank, a prominent figure in the Indian banking sector, has unveiled a substantial revision to the service charges associated with its savings accounts. As households and individuals across the nation align their financial planning with these updates, it is crucial to be aware of how these changes, ranging from debit card fees to cash transaction charges, and other banking services, will roll out as they come into effect from May 1, 2024.
Beginning with the mode of access that links customers to their money – the debit card – ICICI Bank has differentiated its charges based on the location of use. Regular locations will see an annual fee of Rs 200, while those using their debit cards in Gramin locations will be charged a reduced annual fee of Rs 99. This fee restructuring is part of the bank’s endeavor to cater to the diverse demographic and their varying banking requirements.
When it comes to traditional banking tools like cheque books, the bank has drawn a line after the first 25 leaves which it offers free of charge annually. Post that threshold, any additional cheque leaf utilized will incur a fee of Rs 4. It is important for customers to note the transaction cap set at Rs 25,000 to avoid any unforeseen expenses.
Setting the tone for inclusivity in banking access, the revised schema ensures that the first three cash transactions per month at the home branch will not attract any charge. Beyond this cap, transactions will carry a charge of Rs 150 each. Additionally, cash transactions above the free limit of Rs 1 lakh per month will cost Rs 5 per Rs 1,000 or Rs 150, whichever is higher.
Branch loyalty, however, does not extend to non-home branches where charges will be applicable sooner. For transactions exceeding Rs 25,000 per day at non-home branches, a charge of Rs 5 per Rs 1,000 or Rs 150, whichever is higher, comes into play. A similar charge is applicable to third-party cash transactions, with the added caveat of a transaction cap at Rs 25,000, beyond which transactions are not permissible.
Administrative services related to Demand Draft (DD) or Pay Order (PO) such as cancellation, duplication, or revalidation have also been monetized. A flat fee of Rs 100 per instance will be levied for availing these services. This is a move that possibly aims to encourage the use of more modern, digital payment methods that are often less resource-intensive for the bank to process.
In the arena of instantaneous digital payments, the Immediate Payment Service (IMPS) charges now follow a sliding scale ranging from Rs 2.50 to Rs 15, dependant on the transaction amount. This tiered approach might prompt a reconsideration of transaction amounts to optimize for cost-efficiency when transferring funds.
These revised charges, applicable from the spring of 2024, underscore a growing trend in the banking industry to incentivize digital transactions while cautiously managing the use of traditional banking services. The bank’s decision reflects a careful calibration to balance the operational costs of providing these services with the convenience and preferences of customers.
ICICI Bank’s revised service charges are a signal of the evolving financial landscape that is in keeping with the global move toward a digital-first economy. While these changes may take some adjustment, customers are encouraged to review their banking habits and plan accordingly to leverage the services that best fit their financial management strategies.
With financial literacy and digital adaptation becoming ever more important components of modern life, it will be interesting to see how these changes by ICICI Bank impact the banking behaviors of Indians and whether it will stimulate further appetite for innovative financial services that align with the digital age.
